2 year 10% rental guarantee
FAQs
- How do you know the discount properties offered are genuine discounts?
- What kind of property Discounts can I expect?
- Can I use my own Solicitor or Mortgage Broker?
- Is it easy to get a mortgage?
- Can I have more than one Buy to Let mortgage?
- Are Buy to Let mortgages Capital or Interest only payments?
- What Lenders do you use?
- Can I sell my property when I have completed?
- How much rent should I charge?
- What if I decide not to proceed with the purchase?
- Is it best to let the investment properties furnished?
- Who pays council tax?
- Who pays ground rent and service charges on Apartments?
- Is now a good time to invest?
How do you know the discount properties offered are genuine discounts?
Before securing any property development, independent property surveys and rental appraisals are carried out. It is not uncommon for Developers to overprice their properties. It is vital to fully assess the true value of each investment property to avoid investor disappointment and down valuations as the mortgage process proceeds. It is in everyone’s interest that the true property value is established before any deal is completed. All Lenders will carry out their own valuations regardless of the stated value. If the Lender down values the investment property it could mean you have to invest more of your money for the deal to proceed. This scenario needs to be avoided. EPG turn down many investment properties that fail to meet the independent valuation required.
What kind of property Discounts can I expect?
With Off-Plan properties the discounts available to investors are often lower when compared to completed properties. However it is important to remember that you are buying a property which will increase in value throughout the period of the build, increasing your equitable wealth, while you sit back and watch it grow. Having said that EPG still strives to obtain between 15% - 20% GENUINE builder discounts for our investors.
With overseas properties the situation differs again. It is very uncommon to obtain large discounts, however with the prices offered to EPG investors often lower than the UK, with much higher returns expected in the short term, overseas investments still prove very attractive. Especially, when considering many schemes offered by EPG come either full furnished or with guaranteed rental incomes, surpassing your initial investment.
Can I use my own Solicitor or Mortgage Broker?
Due to the structure of our deals and the time related pressures when purchasing discounted properties we always insist you use our Solicitors and Brokers. Firstly, The Rutland Partnership has negotiated excellent fees on your behalf but more importantly they understand the structure of the deal and the importance of submitting paperwork and documents in a timely fashion to enable you to complete within the timescale's allowed.
Is it easy to get a mortgage?
A buy to let mortgage is normally secured on the property you are purchasing. The Lender as part of the mortgage process may carry out a credit search on you to see if you have any adverse credit problems such as late or missed payments. In addition, they may check if you have any outstanding loans or credit card payments.
It is therefore important to ensure that you have the cleanest credit record possible. However, we can normally arrange loans for most people whatever their circumstances but if the Lender feels there is a risk in lending you the money this could also affect the interest rate offered to you.
Can I have more than one Buy to Let mortgage?
Yes. However, some Lenders will restrict the amount of exposure they have with any one person sometimes restricting them to say two mortgages.
Are Buy to Let mortgages Capital or Interest only payments?
The majority of Buy to Let mortgages are interest only repayments because the figures calculated on rental income work. Repayments on the capital aspect of the loan may not give you the rental return to cover the mortgage. Full guidance and professional advice will be provided before deciding what mortgage to apply for.
What Lenders do you use?
Ellesmere Property Group use many Lenders to secure loans for property investors as their products and interest rates change on a regular basis. EPG endeavors to get the best possible deal for each individual investor depending on their circumstances and long-term plans. The Mortgage Brokers will always liaise directly with you to ensure they get a full understanding of your needs and the best mortgage products available.
With overseas property, the finance is usually pre-arranged through Government Banks or Overseas lending firms.
Can I sell my property when I have completed?
Yes, you are free to sell your property at any time after all it is your investment. However, if you are serious you should really be investing in property for the medium to long-term, as the trick is to gain from year on year capital growth.
Selling your investment property immediately is one way of releasing the equity you have gained from the discounted purchase and it could be used to help fund your next investment. But it is not always that easy to sell a property for the full asking price on new build developments to make a quick profit.
When investors do this its called 'flipping', buying a property at discount with the intention of selling on immediately at the full asking price.
How much rent should I charge?
Before securing a development, an independent rental assessment is made to ensure expected rental values are realistic. Developers can sometimes exaggerate what their properties can be let for once you have purchased it.
This is an important survey as your mortgage can sometimes be offered on the Loan to Value that is calculated on expected rental incomes. If the rental valuation falls short it can affect your mortgage offer and obviously the expected rental income.
All Ellesmere developments must meet stringent rental assessments prior to being accepted into the property portfolio provided by the company. However, even though a sensible monthly rental figure will be suggested to you, be aware that some investors do try and let their properties for more than the going rate and this can affect how quickly the property is let. It is better to have a small shortfall in rental income than an empty property.
What if I decide not to proceed with the purchase?
Unfortunately, Reservation Fees are non refundable as this money is paid direct to the Developer for holding the property for sale.
It is important that you fully consider your purchase before proceeding with your investment property as time delays due to cancellations can seriously jeopardise our relationship with the developer as we only have a short period of time to exchange. Should you withdraw at a late stage it leaves us very little time to find an alternative investor within the allowed timescale.
Is it best to let the investment properties furnished?
It depends. If your property is a City Centre Apartment aimed at the corporate or student sector then possibly. It all depends on the location, what the local market is demanding and what kinds of rent you can obtain. Most investors will have a mixed portfolio of furnished and unfurnished properties.
Supplying a furniture package is also an added cost to you the Landlord so you need to carefully consider your budget. Remember, before any property is let it must have floor coverings, i.e. carpets or laminated floors etc and window dressings such as blinds or curtains.
Who pays council tax?
The tenant is responsible for his or her own Council Tax on each property. However, Landlords with vacant properties can be charged 50% of the Council Tax levy.
Who pays ground rent and service charges on Apartments?
The Landlord is responsible for the payment of ground rent and any service related charges. This payment needs to be factored into the monthly rental assessment if possible and passed on to the tenant if you can.
Is now a good time to invest?
From an investment point of view there is never a right or wrong time to invest in property. History has proved that in the long term property prices do rise. However, the best time to invest is when your circumstances allow you to do so without putting too much financial pressure on you.